FOMC minutes show member concern over "dots"

|By:, SA News Editor

The decision to scrap the 6.5% UE rate threshold for hiking interest rates was made in a secret video conference call in early March, the summary of which is included in the just-released FOMC minutes from March 18-19.

The minutes also reveal FOMC members as concerned the markets would overreact to the "dot plot" which showed a move up in expectations for both the timing and pace of rate hikes. The FOMC got the overreaction part right. The minutes contain no mention of the "six months" phrase uttered by Janet Yellen at her post-meeting press conference as she responded to a question about how long it would be before rate hikes started following the end of QE.